No bids in Moroccan tender for US wheat

AUGUST 14, 2012 BY AGENCY REPORTER LEAVE A COMMENT

RABAT: The Moroccan state grains agency ONICL said on Monday it had not received any offers for its tender to buy up to 300,000 tonnes of United States-origin soft wheat under a preferential tariff agreement.

ONICL gave no reasons for the absence of bids in its first tender for foreign wheat in the current import campaign, set to be Morocco’s biggest in 30 years, but two local importers said high international prices meant margins on the transaction were too low, accroding to Reuters.

The authority maintained a December 31 deadline for completion of the transaction.

Officials at ONICL could not be reached for comment.

The announcement precedes another tender on Wednesday for 300,000 tonnes of EU-origin soft wheat — also part of a preferential tariff agreement — which local and foreign traders expect will meet the same fate.

The failure of the tender for the US soft wheat to attract interest did not surprise traders because international prices are currently above the reference price the Moroccan state pays local suppliers for domestic wheat.

“It does not come as a surprise. These (preferential trade agreement) tenders are a waste of time, a necessary step before measures are taken (by Rabat authorities) to allow Morocco to import for real”, a European exporter said.

“The only choice for the government is to freeze import tariffs on soft wheat imports,” the trader said. Morocco imposes a 17 per cent import duty on soft wheat, which is considered low compared to the 100-plus import duty regime it imposes in years of good domestic harvest.

A government official said the country currently holds 1.9 million tonnes of soft wheat in stocks.